Following two distributions of recovered funds to victims, the USFIA Receiver has requested court permission to destroy records and close the Receivership.

As per a Final Report filed by the USFIA Receiver on May 14th, the Receivership has distributed $63.3 to USFIA victims. This represents a 79.2% recovery for victims’ with valid claims.

As of May 3rd, 2024, the USFIA Receivership is still sitting on $1.7 million. The Receiver “proposes that these funds be used make corrective payments to certain investors” and outstanding Receivership fees.

The remaining balance of $527,796.42 shall be paid to the Securities and Exchange Commission for payment to the United States Treasury.

In an accompanying declaration, also filed on May 14th, the USFIA Receiver goes on to request permission to destroy records and close the Receivership.

I believe that it is now appropriate to pay administrative fees and expenses, file final tax returns, close the receivership case, and seek the discharge and release the Receiver.

USFIA
was an MLM Ponzi scheme launched by Steve Chen back in 2013.

USFIA defrauded consumers out of $197 million. Of that amount, only $1.7 million was paid out in MLM commissions and ROI withdrawals.

The SEC
shut down what was left of USFIA
in late 2015. Steve Chen
pled guilty to USFIA related criminal charges
in 2020.

In February 2022 Chen was
sentenced to ten years in prison
. Chen
died less than a year into his sentence
in November 2022.

Pending court approval, closure of the Receivership will bring BehindMLM’s reporting on USFIA to an end.

Update 1st July 2024 – 
The court approved the USFIA Receiver’s closure motion on June 27th, 2024.

As stated above, this brings BehindMLM’s USFIA coverage to an end.

🤖 Quick Answer

What is the status of the USFIA Receivership closure?
The USFIA Receiver filed a Final Report on May 14th requesting court permission to destroy records and close the Receivership. The process follows two distributions of recovered funds to victims, with the Receiver proposing to use remaining $1.7 million for corrective payments and fees, while transferring $527,796.42 to the SEC for Treasury payment.

What recovery rate have USFIA victims achieved?
The USFIA Receivership distributed $63.3 million to victims with valid claims, representing a 79.2% recovery rate. This distribution occurred following the Receiver's Final Report filing, marking significant progress in compensating affected investors through the receivership process.

How will remaining USFIA Receivership funds be allocated?
Of the $1.7 million remaining as of May 3rd, 2

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